Natural Gas Price Forecast January 9, 2018, Technical Analysis

Natural gas markets rallied right away on Monday, gapping higher at the open. We went as high as $2.87, but we have seen a significant amount of selling pressure from that region, and therefore have squashed bullish movement. The market looks likely to be very noisy, and most certainly could offer plenty of opportunities. I like the idea of selling rallies as they appear, especially after seeing signs of exhaustion. Any type of noise between here and the $3.00 level. Any signs of weakness between here and there is a nice opportunity to search shorting from what I see, and at this point in time I do not trust any rallies to hold on to gains. We’ve seen this time and time again, the market goes higher based upon thin volume, and then sells off again.

I believe that eventually we will go looking towards the $2.75 level again, and then possibly even the $2.60 level after that. The $2.50 level is the “floor” of the market, but I don’t see the reason why we don’t try to get down there sometime of the next couple of months. Quite frankly, this is January, and if we can’t keep gains now, when can we? I am a seller and have no scenario in which a willing to buy this market anytime soon, and would quite frankly have to see a complete change in attitude and fundamentals, neither which are likely to happen.

NATGAS Video 09.01.18